COK Insurance Requirements 2pgs.pdf

City of Kentwood, Michigan Statement of Insurance Requirements for Vendors, Engineers, Contractors, Consultants, and Other Entities

Notice. For purposes of this document, the term “Vendor” is used throughout. Whenever this document shall be incorporated by reference as a contract document within a contrac-tual relationship established by the City of Kentwood, “Vendor” as used in this docu-ment shall be interpreted to mean the term (e.g., “Vendor”, “Engineer”, “Contractor”, “Consultant”, etc.) used within that contractual document to refer to the person or entity providing goods or services to the City of Kentwood (hereinafter, the “City”) as a result of that contract document.

Section A. Required Insurance Coverage.

1. Automobile Insurance. Vendor shall, at its sole expense, obtain and maintain in effect, dur-ing the term of any contract with the City, Michigan “no-fault” coverage and residual com-prehensive motor vehicle liability insurance. This insurance shall protect Vendor and the City against all claims for personal and bodily injuries to members of the public and damage to property of others arising from the ownership, maintenance, loading or unloading, or use of any motor vehicles, including owned, non-owned, and hired vehicles.

The liability limits shall not be less than:

(a) Michigan Automobile Insurance Reparation Benefits (No-Fault) – statutory limits to apply;

(b) Five Hundred Thousand Dollars ($500,000.00) per person/One Million Dollars

($1,000,000.00) per accident bodily injury; and

(c) Five Hundred Thousand Dollars ($500,000.00) per occurrence property damage; or

(d) A combined single limit of One Million Dollars ($1,000,000.00) per occurrence.

2. Workers’ Compensation. Vendor shall, at its sole expense, obtain and maintain in effect, during the term of any contract with the City, workers’ compensation insurance meeting Michigan statutory requirements and employer’s liability insurance with minimum limits of One Hundred Thousand Dollars ($100,000.00) for each accident or disease for each em-ployee, and Five Hundred Thousand Dollars ($500,000.00) policy limit for disease.

3. Comprehensive (Commercial) General Liability. Vendor shall, at its sole expense, obtain and maintain in effect, during the term of any contract with the City, comprehensive general liability insurance, written in comprehensive occurrence form and protecting Vendor and the City against all claims for personal and bodily injuries to members of the public, damage to City premises and equipment, property of others, and products and completed operations arising from any act or omission of Vendor, its officers, employees, agents, and representa-tives.

The liability limits shall not be less than:

(a) One Million Dollars ($1,000,000.00) per occurrence/Two Million Dollars

($2,000,000.00) general aggregate;

(b) Two Million Dollars ($2,000,000.00) aggregate for products and completed operations; and

(c) One Million Dollars ($1,000,000.00) for personal and advertising injury.

4. Professional Liability. To the extent that services provided to the City include professional services (e.g., architectural, engineering, or the like), Vendor shall, at its sole expense, obtain and maintain in effect, during the term of any contract with the City, insurance covering acts, errors, or omissions of a professional nature committed or alleged to have been committed by Vendor and/or any subcontractor as a part of its performance under its contract with the City. Coverage shall be effective upon the date of Vendor’s contract with the City and shall remain effective for a period of not less than three years after the date of final payment hereunder, and shall include all prior acts related to Vendor’s performance of services for or on behalf of the City. Insurance thus provided shall provide coverage of not less than One Million Dol-lars ($1,000,000.00) per occurrence and One Million Dollars ($1,000,000.00) annual aggre-gate.

Notice of Claims. Vendor and the City shall promptly notify each other of any knowledge regarding any occurrence which may result in a claim against either of them, and shall coope-rate with each other whenever any claim is filed against either of them with respect to the services rendered pursuant to any contract between Vendor and the City.

City of Kentwood, Michigan Statement of Insurance Requirements for Vendors, Engineers, Contractors, Consultants, and Other Entities

Section C: General Insurance Requirements.

Each insurance policy required by the terms of this Statement of Insurance Requirements shall comply with the provisions of this Section.

1. It shall be the responsibility of Vendor to maintain adequate insurance coverage at all times, regardless of the City’s acceptance of Vendor’s insurance. Failure of Vendor to maintain adequate coverage shall not relieve it of any contractual responsibility or obligation.

2. Each insurance policy required by the terms of Sections A.1. and A.3. of this Statement of Insurance Requirements shall name the “City of Kentwood, a municipal corporation of the state of Michigan and all associated, affiliated, allied and subsidiary entities of City, now ex-isting or hereafter created, and their respective officers, boards, commissions, councils, em-ployees, agents and vendors, as their respective interests may appear” as additional insureds (herein referred to as the “Additional Insureds”) providing coverage for the Additional Insu-reds to the same extent as provided to Vendor. Each policy which is to be endorsed to add Additional Insureds hereunder, shall contain cross-liability wording, substantially as follows: “In the event of a claim being made hereunder by one insured for which another insured is or may be liable, then this policy shall cover such insured against whom a claim is or may be made in the same manner as if separate policies had been issued to each insured hereunder.” In addition, each insurance policy shall include a severability of interest endorsement cover-ing all named insureds individually and collectively.

3. Vendor shall file with the City certificates of insurance, subject to the approval of the City Attorney.

Each certificate shall state that thirty (30) days’ advance written notice will be given to the City before any material modification, cancellation, or expiration of any policy covered thereby, including without limit cancellation for failure to pay premiums. Notice of policy material modification, cancellation, or expiration to the City shall be made by certified mail to:

City of Kentwood, Michigan Purchasing Department 4900 Breton Avenue Kentwood, Michigan 49508

The City may require Vendor to file with the City certified copies of the insurance policies required hereunder. All certificates shall list any exclusions which are non-standard within the industry as they appear on the policy.

4. All insurance shall be effected under valid and enforceable policies, insured by insurers li-censed to do business by the state of Michigan or surplus line carriers listed in the State of Michigan Insurance Commissioner’s approved list of surplus lines companies qualified to do business in the state of Michigan. All insurance carriers and surplus line carriers shall be rated “A” or better by A.M. Best Company.

5. As between City and/or Additional Insureds and Vendor, if more than one policy of insur-ance does or may apply to a given claim or matter, then the policy maintained by Vendor pursuant to this Contract shall be deemed the primary policy, and that policy shall contain a provision that states that it is the primary policy as opposed to any other policy of insurance that may apply to City and/or Additional Insureds on any given claim or matter. The term “policy of insurance” as applied to City/ Additional Insureds shall include any contract or agreement providing any type of indemnification or defense obligation provided to, or for the benefit of, City/Additional Insureds, from any source, and includes any self-insured retention or deductible by, for or on behalf of City/Additional Insureds.